Analyzing the adidas Business Strategy: What Makes It Competitive in the Market?
Adidas AG, the German multinational corporation that designs and manufactures sports shoes, clothing, and accessories, is one of the leading players in the global athletic footwear and apparel industry.
Since its inception in 1949, the company has been constantly evolving its marketing and business strategies to stay competitive and maintain its leadership position in the market.
But what makes the adidas business strategy so successful? In this article, we will explore the various aspects of the company’s business model and discuss how it helps them stay ahead of the competition.
The 4Ps of adidas Business Strategy
Adidas operates mostly in the sporting goods industry and focuses on creating products for sporting events and fashion. The company’s business strategy can be classified into the following four categories:
Product
The first P of adidas’s business strategy is product. The company offers a wide variety of sports shoes, apparel, and accessories that cater to the needs of different athletes and sports enthusiasts.
Adidas products are popular for their unique and innovative designs, which are created by collaborating with athletes and designers to produce high-quality products that meet the needs of their customers.
Price
Adidas’s pricing strategy is based on the premium pricing model, which involves setting a high price for their products to give customers a perception of high quality. However, the company also offers discounts and promotions to attract price-sensitive customers.
Promotion
The company’s promotional strategy focuses on celebrity endorsements and event sponsorships to create brand awareness. Adidas has partnered with several celebrities, including Kanye West and Beyoncé, to promote their products.
Additionally, the company sponsors international sports events such as the FIFA World Cup and the Olympic Games to increase brand recognition and visibility.
Place
Adidas’s place strategy includes both online and offline channels. The company operates hundreds of retail stores around the world, and its products are also available through online channels such as Amazon and its own e-commerce website.
The Role of Technology in adidas’s Business Strategy
Adidas’s business strategy revolves around using technology and innovation to stay ahead of the competition. The company heavily invests in research and development activities to create new and innovative products that cater to the changing needs of their customers.
One example of how the company is using technology is the creation of 4D printed shoes. The shoes are created using a digital printing process that produces a shoe sole unique to the wearer’s foot shape. This innovation has helped the company to differentiate itself from its competitors.
Conclusion
Adidas’s business strategy is based on creating high-quality products, using premium pricing, leveraging celebrity endorsements, and sponsoring international sports events to promote the brand. The company’s relentless focus on innovation and technology has helped it to maintain its leadership position in the market.
However, with increasing competition from rivals such as Nike and Under Armour, Adidas must continue to innovate and stay ahead of the curve to maintain its competitive edge.
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